Mr. Speaker, recognizing the increasing number of transportation options available to citizens of Sault Ste. Marie, Hearst, Hawk Junction and Oba, including highways and other rail lines, in budget 2013, the Government of Canada made the decision to terminate the subsidy to Algoma Central Railway on March 31, 2014. Last year the Minister of Transport extended the $2.2 million subsidy for an additional year to allow time for stakeholders interested in continuing the service to come up with a long-term, self-sustaining solution.
Transport Canada officials are reviewing a proposal submitted by Sault Ste. Marie for a possible new operator to provide passenger rail service between Sault Ste. Marie and Hearst, Ontario. Currently, the department is also reviewing the application from the potential new operator to obtain a railway operating certificate, ROC. It is extremely important that Transport Canada has an opportunity to assess whether or not the proposed passenger rail operation is safe for all Canadians before it begins operations, and that any funding provided by this government is an effective use of taxpayer dollars.